Asia Pacific Expanded Perlite Market

Maritime Transport Difficulties Surface Due to COVID-19 Lockdown Measures in Asia Pacific

The constant evolution of the COVID-19 (coronavirus) situation has compelled manufacturers in the Asia Pacific expanded perlite market to adopt new manufacturing and distribution strategies. Chemviron Carbong— a provider of activated carbon purification systems is anticipating a global impact on the activated carbon availability from Asia, since the region has been under scrutiny for lockdown measures. Since expanded perlite is used in advanced filtration systems, manufacturers are increasing their efforts to tackle logistics and transport operations in Asia Pacific.

Companies in the Asia Pacific expanded perlite market are taking additional initiatives to abide with the guidelines issued by the local authorities and health organizations. As such, companies are facing maritime transport difficulties in Asia Pacific due to lockdown measures. They are closely monitoring the COVID-19 situation and updating their strategies for maintaining steady supply chains.

Moreover, lockdowns imposed by various governmental organizations in Asia Pacific to curb the spread of the COVID-19 pandemic have severely impacted the construction industry in the region. However, the COVID-19 pandemic has positively impacted the agriculture industry in Asia Pacific, owing to an increase in home consumption of food products. China, India, Thailand, and Indonesia are experiencing supply chain disruptions due to factory closures and transportation restrictions. The construction industry in China was at an all-time high before the COVID-19 outbreak. This construction industry in China experienced a dip of 28.1% in the first quarter of the current fiscal year due to the lockdown triggered by the COVID-19 pandemic. Several Infrastructure projects, such as Chongqing-Kunming high-speed railway and Xianyang International Airport expansion plan, have been delayed due to COVID-19.

Japan has experienced a relatively smaller COVID-19 outbreak as compared to that in other hotspots such as China, India, and ASEAN countries. As per the Japan Research Institute Limited, Japan’s GDP shrank an annualized 27.8% in the April-June 2020 quarter as compared to the same period in the previous quarter. Even before the COVID-19 pandemic, the construction industry in Japan was affected by the U.S.-China trade spat and a consumption tax hike last year. However, the lockdown was lifted in all 47 prefectures of Japan in late May 2020. This is estimated to boost construction and other sectors in the country in the near future.

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Green Building Initiatives Catalyze Demand for Expanded Perlite

Green building solutions are emerging as a solution to support the ever-increasing human habitation requirements. Since construction companies are falling short of resources, companies in the Asia Pacific expanded perlite market are increasing the availability for perlite, which deploys versatility and usefulness in green building initiatives. Multiple attribute rating programs such as LEED (USGBC) and new building standards such as the National Green Building Standard (IgCC) are encouraging the use of materials such as expanded perlite to prioritize energy-efficient resources in buildings.

Green roofs are becoming increasingly popular to help manage storm water and reduce the heat island effect in apartments located on top floors. Manufacturers in the Asia Pacific expanded perlite market are increasing their focus in perlite cement-based lightweight insulating plasters that are being used in residential villa projects. Cavity wall insulation, phase change insulation, and sub-floor insulation applications are creating revenue opportunities for manufacturers.

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Perlite Versus Other Components in Horticulture: Which is better?

The Asia Pacific expanded perlite market is projected to mature from a value of US$ 350 Mn in 2019 to US$ 570 Mn by 2030. Perlite is being extensively used in horticulture and in the cultivation of herbs. However, expanded perlite is facing a stiff completion from alternative materials such as vermiculite and diatomaceous earth (DE). As such, low cost and naturally-prevailing minerals in perlite tend to offset the advantages of vermiculite and DE.

Manufacturers in the Asia Pacific expanded perlite market are boosting their production levels to increase the availability for perlite, which is being used in gardening applications. The increase in social media buzz around gardening is another key market driver. Perlite is being used as a growing media to boost the starting of seeds.

Insulating Applications Translate into Revenue Opportunities for Perlite Manufacturers

The ever-evolving construction industry is one of the key growth drivers for the Asia Pacific expanded perlite market. Perlite is being used as a construction filler, owing to its high insulating qualities and lightweight attributes. This is evident since the Asia Pacific expanded perlite market is predicted to advance at a modest CAGR of ~5% during the forecast period.

The construction industry has raised a demand for loose fill insulation materials such as expanded perlite. Likewise, lightweight insulating concrete is serving as an ideal construction aggregate filler in building constructions. Manufacturers have developed a laser-like focus in insulating applications for roof decks, floor systems, and membrane fireproofing. Construction engineers are combining perlite with gypsum products to develop efficacious base coats for plasters used in interior walls, roof assemblies, and structural steel members. Joint compounds produced with expanded perlite are being highly preferred to improve bonding properties of materials.

Modifying Consistency of Paint Mediums Crucial for Coloring Sports Grounds

Paint and painting mediums are creating lucrative growth opportunities for manufacturers in the Asia Pacific expanded perlite market. Perlite is being increasingly used in water-based paints to increase the bulk of mediums. In order to create thick impastos, users are mixing perlite with calcite mediums in order to add to the bulk of the overall medium. Such paint mediums help to prevent settling of pigments in heavy extenders. On the other hand, perlite is being used to add texture and modify the consistency of paints.

Sports grounds and stadiums are fueling the demand for expanded perlite. Since perlite is an excellent filter aid, it is increasingly replacing DE in horticulture applications. Commercial uses of perlite involve manufacturing of mortars, insulation, and ceiling tiles. It has been found that more than half of the manufactured perlite worldwide is being used as a construction filler, owing to its adaptability and high-insulating qualities.

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Ultrafine Perlite Microspheres in Plastics Provide Cost Savings Compared to Conventional Fillers

Plastic manufacturing is highly arguable in the current times when increasing number of individuals are becoming aware about its environmental and health hazards. Hence, reuse of plastic has become important now more than ever. Manufacturers in the Asia Pacific expanded perlite market are focusing their production to develop plastics and films made from ultrafine perlite microspheres. Several advantages such as weight reduction, impact resistance, and flexural strength modification are being highly publicized by plastic film manufacturers.

Perlite ultrafine fillers are being used in decorative home and garden fixtures, coatings, and thermosetting resins. On the other hand, ultrafine perlite microspheres used in plastic films have low cost and low volume advantages as compared to other binders and fillers. Manufacturers in the Asia Pacific expanded perlite market are increasing the awareness for cavity and block-fill perlite, owing to its monetary savings in construction applications.

Analysts’ Viewpoint

Companies in the Asia Pacific expanded perlite market are increasing efforts to minimize the impacts of COVID-19 on the business by addressing issues related to maritime transport difficulties in the region. Insulation and construction fillers are a recurring trend in the market landscape. However, expanded perlite is associated with disadvantages such as quick draining of water in gardening applications and its non-renewable nature as compared to DE and vermiculite. As such, the asbestos in vermiculite is also potentially challenging in recycling activities. Hence, manufacturers should increase awareness about perlite’s non-toxic nature, which offsets the advantages of DE and vermiculite in horticulture applications.

Asia Pacific Expanded Perlite Market: Overview

• Expanded perlite is an inorganic, inert, white, ultra-lightweight aggregate, which is biologically stable and has no asbestos content. Furthermore, expanded perlite offers excellent thermal insulation characteristics over a wide temperature range, from minus 273 °C to over 1,000 °C. Additionally, unique structure of expanded perlite makes its surface highly adsorbent, while low bulk density of expanded perlite makes it an ideal low-cost filler for construction materials formulation.
• Based on type, the expanded perlite market in Asia Pacific has been segmented into closed-cell expanded perlite and open-cell expanded perlite. The closed-cell expanded perlite segment dominated the expanded perlite market in Asia Pacific in 2019. High share held by the segment can be ascribed to attributes of closed-cell expanded perlite, including its excellent surface breaking as well as particle breaking strength, which, in turn, are expected to drive its demand in the near future. Furthermore, closed-cell expanded perlite also offers high inter-particle flow ability, as compared to that offered by open-cell expanded perlite, thereby making it a material of choice in the construction sector.
• Based on application, the building & construction segment held a major share of the expanded perlite market in Asia Pacific in 2019. Increase in support from governments of various countries, such as China and India, and rise in foreign direct investments (FDIs) in the building & construction sector are expected to drive the expanded perlite market in these countries in the near future. Outstanding insulating characteristics and lightweight of expanded perlite make it an ideal material for usage in the production of loose-fill insulation in masonry construction. All these factors are projected to drive the demand for expanded perlite in Asia Pacific over the next few years.

Key Growth Drivers of Asia Pacific Expanded Perlite Market

• In 2019, the National Development and Reform Commission of the People's Republic of China approved 26 infrastructure projects with total expected investment of US$ 142 Bn. The Government of China plans to diversify its economy by building infrastructure projects in all provinces of the country in order to counter the country’s sluggish economic expansion due to its dependence on exports and the manufacturing sector.
• As of June 2019, the government had shortlisted a list of 99 cities to be included in the first five phase of the Smart Cities Mission. The total proposed investment for these 99 shortlisted cities would stand at around US$ 22 Bn. Construction activity of the 99 cities are estimated to be complete before 2023. After having rolled out the Smart Cities Mission to 100 cities in a phased manner, the Central Government of India plans to expand the smart cities mission to all 4,000 cities in the country.
• Growing need for energy conservation, emission reduction, and building energy consumption has led to an increase in demand for lightweight wall materials (LWW). LWMs help decrease thermal conductivity of building envelope, reducing the cost of heating and cooling of the building structure. Hence, this increased need for lightweight wall materials is often fulfilled by the use of concrete materials made of expanded perlite and Portland cement. Use of expanded perlite in the manufacturing of mortar, plaster & render, bricks, etc., significantly decreases thermal characteristics and self-weight of the building structure. Therefore, the utilization of expanded perlite in construction materials also lowers the impact of an earthquake on the building structure.
• High insulation and lightweight of expanded perlite make it an ideal material for usage in the construction industry for loose fill insulation and lightweight insulating concrete. Expanded perlite consists of millions of glassy air bubbles that function as insulation cavities. This helps reduce heat transmission, thereby saving a significant amount in heating and cooling cost. Furthermore, expanded perlite is non-toxic and safe for people and the environment. The material is chemical-resistant as well as fireproof. Expanded perlite provides cost benefits without any compromises in quality of finished products, as compared to other insulation products.
• All these factors are expected to boost the consumption of expanded perlite across Asia Pacific in the near future

Impact of COVID-19 on Asia Pacific Expanded Perlite Market

• According to the World Bank, China’s GDP is expected to slow down to 2.3% in 2020 from 6.1% in 2019. In accordance with the United States Department of Agriculture’s report on ‘COVID-19 Impact on the Thai Economy’ dated May 22, 2020, the manufacturing sector (in first quarter of 2020) across the country fell 7% from the same period, in comparison to that in the last year.
• Lockdown imposed by governments across Asia Pacific to curb the spread of the COVID-19 pandemic has severely impacted the building & construction industry. Major application of expanded perlite is in the manufacturing of construction products such as plaster & render, mortar, insulating materials, etc., which in turn is projected to be potentially impacted by the spread of pandemic across Asia Pacific. However, the sector is expected to gain momentum by the end of 2021, thereby fostering the consumption of expanded perlite in the near future.

Leading Players in Asia Pacific Expanded Perlite Market

• The expanded perlite market in Asia Pacific is highly fragmented. It is dominated by players such as
  • Henan Blider Mining Product Co.
  • Ltd, Shenzhen Huayao Electronic Materials Co., Ltd.
  • KyungDong One Co. Ltd.
  • Imerys S.A.
  • Omya SA
  • AUSPERL Pty Ltd
  • Xinyang Caster New Material Co Ltd.
  • Jujiang Perlite Factory of China
  • Santosh Chemical Co.

Asia Pacific Expanded Perlite Market – Segmentation

TMR’s research study assesses the Asia Pacific expanded perlite market on the basis of type, application, and country & sub-region. This report presents the extensive market dynamics and progressive trends associated with different segments, and how they are influencing the growth prospects of the Asia Pacific expanded perlite market.